Ethereum’s much-hated staking 'tax' may already be obsolete

Ethereum’s latest “funding crisis” has triggered a fierce debate: a contentious plan to tax staking rewards versus a new wave of labs and large ETH holders funding development offchain.

Ethereum is running out of money, according to former insiders.

The warning has sparked one of the fiercest Ethereum governance debates in months: should the network fund developers by taxing staking rewards, or just rely on wealthy Ether holders to bankroll its ecosystem?

At the center of the debate is a controversial proposal from Kleros co-founder Clément Lesaege. He suggested redirecting up to 10% of validator rewards to ecosystem funding through a protocol-level mechanism called Validator Redirected Revenue.

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